Premier Financial Alliance fraud cases consolidated

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Premier Financial Alliance fraud cases consolidated

By Oz

Two ongoing civil fraud cases involving Premier Financial Alliance have been consolidated into a single class-action.

The two Californian cases Premier Financial Alliance is currently defending are:

  1. a 2018 suit filed by Rui Chen and Wenjian Gonzales, alleging pyramid scheme fraud; and
  2. a 2019 suit filed by Youxiang Eileen Wang and Biyun Zong, alleging Premier Financial Alliance targeted Asian immigrants for fraud.

Both cases are proposed class-actions and were consolidated by court order on April 16th.

The same day the cases were consolidated, Girard Sharp LLP was appointed Interim Class Counsel.

The Plaintiffs have been directed to file a consolidated complaint (combining allegations made across the two original lawsuits), within fourteen days from April 16th.

Premier Financial Alliance have been directed to file their response to the lawsuit within twenty-one days of the filing.


Premier Financial Alliance denied arbitration and venue change

By Oz

In response to Plaintiffs Rui Chen’s and Wenjian Gozales’ pyramid scheme lawsuit, Premier Financial Alliance attempted to compel arbitration.

The motion was denied January 22nd, 2019, prompting PFA to file a Motion for Reconsideration.

On December 19th, PFA’s Motion for Reconsideration was also denied.

The decision to deny reconsideration was based on PFA’s

failure to submit sufficient evidence that plaintiffs affirmatively agreed to the terms of the Premier Financial Alliance Associate Marketing Agreement (“AMA”) by clicking a box in an online registration form.

This is based on one of the Plaintiffs in a parallel fraud case alleging the affiliate who recruited them signed them up. I.e. they never personally agreed to PFA’s AMA.

In the event reconsideration was denied, PFA sought a venue transfer from California to Georgia.

This was again based on a clause in the AMA, which lead to it being denied for the same reason as arbitration.

PFA’s argument that the company and its employees are based out of Georgia was also rejected.

PFA has not persuaded the Court that any other factors—costs of litigation, ease of access to sources of proof, availability of compulsory process as to former employees or associates, etc.—would favor transfer to Georgia.

The court also noted that “so many” of PFA’s affiliates reside in California.

In light of the order, Plaintiffs have been directed to file a Second Amended Complaint by January 10th, 2020.

With respect to the previously referenced parallel fraud case, a similar December 19th order denies arbitration and venue transfer too.

A case management conference has been scheduled for January 13th, 2020.

Stay tuned for updates as we continue to track both cases going forward.


    Nov 2nd, 2019 at 3:51 am (Q)
    I get a lot messages, calls, social media posting say how many people get over $100k income per year.

    Most of them lie. they will never able to proof by showing their tax return.

    Nov 20th, 2019 at 10:36 am (Q)
    I'm responding from Los Angeles ,Ca. I have also noticed this but in the Hispanic Market.

    The way its presented, its very shady. I would like to give feed back from a California location.

    Can you get me in contact with with the Attorney to talk more details. I had a recruiter pay for my licenses to try and hire me. At the same time time trying to convince me to give 25 of my family members and friend’s information.

    Very pushy, shady and have no shame. Its all about the money and them getting you to recruit as many people asap…

Nov 20th, 2019 at 11:55 am (Q)

Uh if you want to get in touch with an attorney attached to the suit you’ll have to do that on your own.

    Patricia Blair
    Nov 25th, 2019 at 4:12 pm (Q)

    I need to talk to a lawyer who is suing this company as of right now they have taken my $125 trying to get a list of family members and now they are trying to get my 401 k from my job.

    I just got a text. I get one every day And they want me to pay for all these party. $300 and up.

    Please email me I need help with these fast talking people. Ok what the attorney name I will talk with him.


Nov 25th, 2019 at 8:59 pm (Q)

I don’t keep legal filings once I’ve reported on them. You’ll have to acquire case information on your own if you want attorney details.


New Premier Financial Alliance suit claims Asian immigrants targeted

By Oz

A new class-action pyramid lawsuit was filed against Premier Financial Alliance earlier this year.

In addition to covering that, today we’re also revisiting the original 2018 Premier Financial Alliance pyramid lawsuit.

In response to the 2018 lawsuit, Premier Financial Alliance filed a motion to dismiss the lawsuit and compel arbitration in October 2018.

Following the filing of an amended complaint, a second motion to dismiss and compel arbitration was filed later that same month.

On November 28th defendants A JW Production, LLC, Bill Hong, The Consortium Group, LLC, Jack Wu, Rex Wu, and Lan Zhang, filed their own motion requesting the same.

On January 22nd, 2019, the court denied both motions.

Based on the evidence submitted, the court ruled that the Premier Financial Alliance defendants had ‘failed to establish the existence of an agreement to arbitrate

Defendants have failed to meet their burden to show, by undisputed material facts, that the parties entered into an agreement to arbitrate the claims here.

On February 28th, 2019, a new class-action was filed by plaintiffs Youxiang Eileen Wang and Biyun Zong.

Wang and Zong, both New Jersey residents, claim Premier Financial Alliance is a “pyramid scheme” they were “lured” into.

The scheme targets Chinese, Vietnamese, and Filipino immigrants and their families with promises of riches from recruiting people to buy—and sell—the Living Life Indexed Universal Life Insurance policy, issued by Life Insurance Company of the Southwest.

The business model described in the lawsuit is that of your typical “no retail” MLM pyramid scheme.

Although prospective associates are told they will be able to maintain their own insurance business, the policy bought and sold through the pyramid is significantly overpriced.

Premier Financial Alliance instructed Plaintiffs and continues to instruct other “associates” to peddle this policy to other people who, in turn, are instructed to sign up more associates, and so on and so on, ad infinitum.

Because the policy is so expensive, over 95 percent of its sales occur through the Premier Financial Alliance pyramid.

If that 95% figure is anywhere remotely accurate, Premier Financial Alliance appears to be a prime target for an FTC shutdown.

In BehindMLM’s own May 2016 Premier Financial Alliance review, I opined

If Premier Financial Alliance is indeed an MLM company full of affiliates earning commissions based on how much their recruited downlines are spending each month – that’s a problem.

Sounds like that exactly what’s going on.

On the original 2018 pyramid scheme case docket, an administrative motion was filed on March 19th.

The motion sough to relate the 2018 and 2019 cases, and was granted on March 26th.

This means that the same Californian Judge will hear both cases.

On May 6th an initial case management conference for both cases was held.

At the hearing defendants Life Insurance Company of the Southwest, National Life Insurance Company, NLV Financial Corporation and National Life Holding Company were granted a motion to dismiss.

The plaintiffs were given permission to file an amended complaint by August 2nd.

However the same order also stayed the case, pending outcome of a motion to compel arbitration in the 2019 pyramid case.

The last significant filing in the 2018 case is a May 28th motion by the Premier Financial Alliance defendants,

The motion requests permission to seek reconsideration of the earlier arbitration denial decision, or in the alternative a transfer of the case to Georgia.

Plaintiffs Gonzales and Chen have opposed the motion, and a hearing to decide the matter has been scheduled for July 19th.

Switching over to the 2019 case, the motion to compel arbitration that stayed the 2018 case was filed by Premier Financial Alliance on May 28th.

A hearing to decide the arbitration matter was scheduled for July 19th.

As per a July 1st order however, the hearing was continued till August 20th.

To sumarize, Premier Financial Alliance is facing two separate lawsuits that accuse it of being a pyramid scheme.

The most damning allegations in the new 2019 lawsuit are the targeting of Asian immigrants, and claim that 95% of sales within Premier Financial Alliance are affiliate purchases.

Once they pay the $125 membership fee and buy the Living Life IUL policy, Premier Financial Alliance associates are pressured to recruit and sell the policy within their network of friends and family members, typically from the same immigrant group.

Because the Living Life IUL policies are far more expensive than National Life Group’s non-Premier Financial Alliance policy alternatives, Premier Financial Alliance agents are unable to sell these Living Life IUL policies outside of the Premier Financial Alliance pyramid.

Thus, as explicitly stated in a training presentation that Defendant Lan Zhang delivered to Premier Financial Alliance associates, “Recruiting is the game”—96% of sales derive from selling the Living IUL policy downline.

Lan Zhang appears to be a top Premier Financial Alliance affiliate.

A 2016 video cites Zhang as a Premier Financial Alliance “President”, and depicts her receiving a “special birthday present” from PFA founder and CEO, David Carroll.

I’ll be checking in for updates on both cases on July 19th, after which our next scheduled case update will be on or around August 20th.

Stay tuned…


* (7/07/2019) Note:

The post "对华人圈里横行的老鼠会的新骗局IUL的分析" has been removed (读者对文章内容有争议). There is a forum on this topic:


Premier Financial Alliance “classic pyramid scheme” lawsuit filed

By Oz

A recently filed RICO class-action lawsuit alleges Premier Financial Alliance is a “particularly egregious classic pyramid scheme”.

The June 25th class-action lawsuit was filed by Plaintiffs Rui Chen and Wenjian Gozales in California.

Chen joined Premier Financial Alliance in 2017 and Gonzales in late 2017 or early 2018.

Both claim to have been deceived into believing PFA was a “legitimate way to make money”.

Defendants named in the lawsuit include Premier Financial Alliance, David Caroll (CEO and Founder), Jack Wu (“chairman and ringleader”) and his company AJW Productions, Rex Wu (field chairman), Lan Zhang (an “original member” of PFA), Bill Hong (conspirator).

PFA, Carroll, J. Wu, R. Wu, Hong, Zhang, AJW, by their authorization promote the pyramid scheme and make misleading claims of financial success.

To sell the financial-success promise, PFA, Carroll, J. Wu, R. Wu, Hong, Zhang, and AJW flaunt the wealth of the highest-ranked Associates and those few insiders at the top of the pyramid, as examples of the riches that await new participants, if only they will work hard enough (i.e., tirelessly recruit new Associates).

The wechat (a popular social networking platform), instagram, facebook, and twitter posts made during the class period boast of luxury vehicles, grandiose trips, expensive fine dining.

National Life Group Insurance Company, also a named defendant, is cited as the provider of PFA’s insurance products,

with complete knowledge that the Defendants have violated Department of Insurance Guidelines and the anti-pyramid laws, but aided and abetted the conduct of National’s co-defendants.

According to Chen and Gonzales, ‘100% of (Premier Financial Alliance’s) revenues (comes) from chain recruitment‘.

To earn any commissions or financial rewards in PFA, one has to recruit and cause to be signed up, six persons, and obtain a license to sell insurance under applicable State Law.

This, the lawsuit states, comes at the expense of selling insurance policies to retail customers.

The end result?

Premier Financial Alliance affiliates are promised

they will earn vast wealth, luxury vehicles, and lavish trips when in reality … more than 95% of PFA Associates average net losses.

No persons, except the promotors and operators of the Premier Financial Alliance scheme make any money.

A specific example cited in the lawsuit is a representation allegedly made by PFA, by which

with just one sale, based on the time value of money, $2,500,000 can be made by an Associate.

BehindMLM reviewed Premier Financial Alliance in 2016.

In our review we found an astonishing lack of information provided to potential PFA retail customers or indeed, whether retail sales were even possible at all.

This naturally raised the question of what Premier Financial Alliance’s core priority was.

Chen and Gonzales’ lawsuit attributes the lack of retail disclosure to PFA

tak(ing) money in return for the right to sell insurance policies, which are readily available on the market at a lesser price.

PFA themselves don’t sell the insurance policies, hence the lawsuit claim that Premier Financial Alliance has ‘never marketed or sold insurance policies to any retail customers‘.

The principal focus is on recruiting.

For instance, the Defendants market and advertising in their materials, reports, scoreboards, and charts that a Career

Associate is urged to recruit at least “three people and submit three sales of minimum 9,000 points in the first thirty days of joining PFA.”

No marketing is done to retail customers.

Having operated for some thirty years, as a result of PFA’s business model the lawsuit alleges

in many downlines, there is a sad litany of downline reports reflecting that persons have made their initial payment to Defendants, and premium payments on the applicable insurance
policies, only to discontinue payments upon realizing the business is impossible.

What is described in the lawsuit of PFA business model is that of your typical autoship recruitment scheme.

Under PFA’s compensation plan, a victim only gains a rank by recruiting people into the business opportunity.

The business opportunity is focused on recruiting people, and have them purchase 100 “points” in volumes.

The price of the product is so high compared to comparative market prices that it is impossible to legitimately sell these products retail, except to friends and families.

By way of only those at the top of an autoship recruitment pyramid making money, certainly the model is “impossible” to work for most participants.

Plaintiff’s Gonzales and Chen are seeking to represent a class of similarly situated Premier Financial Alliance victims, of whom they estimate there are over 25,000.

Premier Financial Alliance affiliates who qualify for the class-action include any who signed up from June 25th, 2014 and ‘paid more to the scheme than the amount of money they received from PFA‘.

Stated aims of the class-action include establishing

  • whether Defendants are operating an endless chain;
  • whether Defendants’ omitted to inform the Plaintiff and the plaintiff class that they were entering into an illegal scheme where an overwhelming number of participants lose money;
  • whether PFA’s statements of income during the Class Period were deceptive and misleading;
  • whether PFA’s conduct constitutes an unlawful, unfair and/or deceptive trade practice under California state law;
  • whether PFA’s conduct constitutes unfair competition under California state law;
  • whether PFA’s conduct constitutes false advertising under California state law and;
  • whether the Defendants violated the Department of Insurance Guidelines in representing the benefits under a policy and/or underwriting.

Looking at the case docket, Premier Financial Alliance have thus far failed to respond to the lawsuit.

Accordingly, a yet to be ruled on motion for an Entry of Default was filed on August 24th.

We’ve added the lawsuit to our list of cases we’re following, so stay tuned for further updates as the case progresses.





美国当地时间6月25日,居住在美国加州的Rui Chen和Wenjian Gonzales通过代理律师向加州北部地区法院提交了一份长达29页起诉书,将金融理财公司Premier Financial Alliance及其公司五名主要成员集体告上法庭,起诉他们进行非法传销。

起诉书同时也把为PFA提供产品的国家人寿(national life group)保险公司列为共同被告,小编一身冷汗,这可是全美华人圈里最大传销公司呀,这要倒闭了,多少人的钱血本无归呀。

据起诉文件,其中列出的被告分别为PFA公司以及David Carroll,Jack Wu,Rex Wu,Lan Zhang,Bill Hong,AJW公司,美国国家人寿保险公司。起诉书中称,上诉五人为传销计划核心成员,AJW为PFA核心成员为收钱成立的公司。

通过PFA在社交媒体上的宣传查询到,Jack Wu是PFA行政主席;Rex Wu为行政总监;Lan Zhang,全美资深总裁;Bill Hong,全美总裁。多名在美华人表示,这几个人就是PFA成员常常宣传的公司大咖。

PFA的宣传材料,张岚(Lan Zhang)人称岚姐,年收入300万美金!的介绍为,美国著名女领袖型企业家,被誉为美国华人“创业奇才”。六年前从地产行业副总裁跨界美国金融创业,创造了美国金融业的奇迹,被誉为“改变游戏规则的人”,被称为“点石成金”的创业导师,美国金融界的传奇女王。常说:“ 华人在美国不缺本身,缺的是PFA这个伯乐和平台” 

起诉书中原告指控被告PFA典型的金字塔骗,局起诉书中称,这是一个金字塔骗局计划,原告Rui Chen和Wenjian Gonzales基于PFA极具诱惑性的招募信息以及希望获得财务自由的信念,在2017年至2018年期间加入PFA。

根据起诉书中称,PFA的每个成员都有上线和下线,其成员级别分为基础级、经理级和最高级。基础级包括四类Career Associate, Field Associate, Senior Associate和 Provisional Field Director。

一个基础级别的成员招募的下线越多,他们赚的钱就越多,并且级别能够得到提升,经理级包括预备经理和高级经理。最高级别包括区域经理, 地区经理,全美总监和全美总裁。所有成员只有通过招募下线才能晋升级别。






由于本人保险到期,看到有一个介绍理财型保险很不错,于是就加了微信联系经纪人JESSICA 。



然后就在约定时间到了对方公司。 去了之后对方就开始介绍一些前辈的成功经历,基本都是在经历1-12个月之间就实现了年薪10万,时间自由。





讲完这个工作人员就说了加入公司需要先交125元的会费,然后拿到保险执照了以后公司会把这个钱返还给大家的。然后就是要了我的ID和银行卡sign in。当时没有说买保险的事情,因为我觉得这个保险我还需要回头再详细了解下回家和家人商量下。




再结合那些工作人员的说法,确定这就是一个传销公司,并且曾经多次被多个州政府起诉,起诉的原因包括“销售非授权证券”, “用免费午餐讲座误导客户” 等等。还好发现的早,果断放弃逃过一劫。但是我还是被她们玩了(这也怪自己太大意),第二天我查我的银行卡发现有一笔交易是他们公司刷的125的费用,时间是我去PFA的那天,费用名称是礼品服务费。




当然了钱是不多 ,但是我是不会就这么饶了这些坑蒙拐骗的人的,由于发现的早那笔款还是在PROCESSING的状态,所以就联系银行claim要回自己的钱。自身经历警示那些在求职路上的同仁,华人骗子太多了,这也让我想到了PFA的人为什么说不要找白人,黑人,墨西哥人,他们就是心虚啊,鬼佬的话肯定要找他们麻烦的,觉得中国人好骗呀!





“对比看了后,发现他们的大额保单受益要比普通的高好几倍。”虽然也听说过PFA不好的传闻,但是Lynda在网上搜索提供产品的国家人寿保险公司,有很长的历史,“排名比较居中”。而且她觉得,就算PFA有问题,国家人寿不太可能欺骗消费者,这样他们是要负法律责任的。其实PFA是national life group ,是下面的一个agency,是个人都可以代理。 






目前,法院已经受理此案,并于7月9日指派法官Donna M. Ryu负责审理此案。根据最新更新的案件信息显示,法院已经向被告提出传唤并发送了传票。

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